York has come second, moving up four places from last year, in Colliers International’s latest UK Hotels Market Index, an analysis of 34 locations across the UK, ranked to determine the ‘hot spots’ for hotel development and acquisition across the country.
The city’s high position is mainly due to good hotel performance indicators and a positive revenue per available room (RevPAR) trend.
The report uses nine Key Performance Indicators (KPIs) to score each of the 34 locations a figure from one to five (one being the lowest and five being the highest). The determining indices include land site prices; build costs; market appetite; valuation exit yields; room occupancy; average daily rate; room occupancy rates; four year RevPAR Trend; active pipeline as a percentage of current supply and construction costs.
The ratings are then consolidated into a single figure and ranked to show which markets are hot and which are not in terms of a desirable location for investors to acquire an existing hotel or develop a new one.
Peter Bean, director of Hotels Agency at Colliers International’s Leeds office, said: “The data in our second report reveals the ever-changing nature of the UK hotels market. York has really upped its game in the last year to make it into the top five.
” Of course, this is a general market index and site specific factors will lead to significant variances but the data demonstrates that London is not the only city that investors should be watching and offers a credible indication to influence their decision making process.”